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By: Jaspreet Singh and Navdeep Flora

Selection of a Project
Strong entrepreneur most vital aspect of successful project Suitable project has to be decided. This involves Product and Service selection Location selection Feasibility study Business plan Project profile

Product or Service selection


Entrepreneur has to consider following factors: Background and experience Availability of technology Marketability of product/service Investment capacity Availability of infrastructure, plant and raw material

Location Selection
Some major decisions regarding location selection are: Proximity to market Availability of raw material Transportation and communication facilities Government policies Concessions/incentives Power Drainage/disposal facility

Project feasibility study


Feasibility literally means whether some idea will work or not. We need to do Market analysis Financial analysis Technical analysis Economic analysis Ecological analysis

Business plan preparation


Keep target audience in view Strategy- core of a business plan Think competitively throughout Be realistic Involve people Facts

Project profile
It acts like a birds eye view on the whole project Helps in obtaining the Provisional Registration Certificate (PRC) from District Industries Centre for applying to industrial area development board for the land or to SSIDC.

Decide on the constitution


To start an industry the promoter(s) have to decide on the constitution of the unit. There are four major alternatives: a. Sole Proprietorship b. Partnership c. Corporation/Limited Company d. Cooperative e. Franchising

Registration
Small scale industries should seek registration with the Director of Industries of the concerned State government Obtain a Provisional Registration Certificate. Once the unit goes into production, the PRC has to be converted into a Permanent Registration Certificate (PMT). PRC is necessary for obtaining sources like land and finances.


PMT will help SSI with: To apply for scarce raw material For imported raw material For working capital loans from banks and financial institutions Central excise duty concessions Tax exemption

Basis of evaluation
Obtained all necessary clearances like Drug license, NOC from Pollution Control Board Not violating any location restrictions Value of plant and mach. is within limits Not owned, controlled or subsidiary of other industrial undertaking

Project report
For a new project proper planning is necessary. A detailed report provides such plans for the project. Major contents of a project report Summary Company details Operational details Project details Project cost Means of finance

Websites
www.bplans.com for business plan softwares and free sample business plans www.sba.gov information on starting a business www.pipdic.com procedure for starting SSI www.mdifranchise.com discover franchise opportunities www.opportunityindia.net identifying new business opportunity